Analysis and Practical Application of Option Vertical Arbitrage Strategy

 2019-11-26 06:51:17

Binary options investment arbitrage strategy is more abundant. Arbitrage strategies are more popular for robust investors. For investors, pure investment strategies can no longer meet their needs, and more prudent investment strategies are needed.

The option vertical arbitrage strategy refers to the strategy of buying an option contract and selling an option contract with the same underlying contract and different exercise prices. The two options should both be call or put options.

The vertical means that the two option contracts have the same time dimension, but different price dimensions, and there is a price gap. That is, the exercise price of the two option contracts is different. The price difference between the premium and the premium determines the investor's maximum risk and return.

Generally speaking, risks and returns are relatively limited and are relatively easy for the market to accept.

Although arbitrage strategies are good, they require more expertise. If you are not familiar with the advantages and disadvantages of arbitrage strategies and the application environment, there will be greater risks.

By comparing and analyzing options arbitrage strategies, we believe that options vertical arbitrage is easier for ordinary investors to operate. It requires less professional knowledge, is simple and easy to understand, has obvious advantages, and currently has many opportunities.